SB-994 • 2026

Local agencies: nondisclosure agreements.

Education Labor

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Cabaldon
Last action: 2026-06-09
Official status: From committee: Do pass and re-refer to Com. on L. GOV. with recommendation: To consent calendar. (Ayes 12. Noes 0.) (June 9). Re-referred to Com. on L. GOV.
Effective date: Not listed

Plain English Breakdown

The exact impact on local agency budgets is not specified beyond potential state reimbursement if mandated by the Commission on State Mandates.

Local Agencies: Nondisclosure Agreements

This law prohibits local government officials from entering into nondisclosure agreements that prevent them from sharing information with their colleagues about public business.

What This Bill Does

Prohibits local agency officials from entering into nondisclosure agreements that prevent them from sharing information with other officials on the same council, board, commission, district, or agency.
Requires local agency officials to disclose if they have a prohibited nondisclosure agreement.
Makes any such nondisclosure agreement entered after January 1, 2027, invalid and unenforceable.
Prohibits staff of local agencies from entering into agreements that prevent them from sharing information with their supervisors or the governing body of their agency.
Requires staff to disclose if they have a prohibited nondisclosure agreement.
Makes any such staff-related nondisclosure agreement entered after January 1, 2027, invalid and unenforceable.

Who It Names or Affects

Local government officials
Staff working for local agencies

Terms To Know

Nondisclosure Agreement (NDA): A legal contract that prevents someone from sharing certain information.
Trade Secrets: Confidential business information that gives a company an advantage over competitors.

Limits and Unknowns

The law does not apply to local government officials serving on behalf of charter cities or charter counties.
Local agencies may need state funding if the new rules create extra costs for them.

Bill History

2026-06-09 California Legislative Information
From committee: Do pass and re-refer to Com. on L. GOV. with recommendation: To consent calendar. (Ayes 12. Noes 0.) (June 9). Re-referred to Com. on L. GOV.
2026-05-26 California Legislative Information
Referred to Coms. on JUD. and L. GOV.
2026-05-20 California Legislative Information
In Assembly. Read first time. Held at Desk.
2026-05-19 California Legislative Information
Read third time. Passed. (Ayes 39. Noes 0.) Ordered to the Assembly.
2026-05-18 California Legislative Information
Read second time. Ordered to third reading.
2026-05-14 California Legislative Information
From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
2026-05-11 California Legislative Information
May 11 hearing postponed by committee.
2026-05-04 California Legislative Information
Set for hearing May 11.
2026-04-23 California Legislative Information
Read second time and amended. Re-referred to Com. on APPR.
2026-04-22 California Legislative Information
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0. Page 4013.) (April 22).
2026-04-09 California Legislative Information
Set for hearing April 22.
2026-03-24 California Legislative Information
From committee: Do pass and re-refer to Com. on L. GOV. with recommendation: To consent calendar. (Ayes 12. Noes 0. Page 3659.) (March 24). Re-referred to Com. on L. GOV.
2026-03-16 California Legislative Information
Set for hearing March 24.
2026-02-18 California Legislative Information
Referred to Coms. on JUD. and L. GOV.
2026-02-09 California Legislative Information
From printer. May be acted upon on or after March 8.
2026-02-05 California Legislative Information
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 994, as amended, Cabaldon.
Local
government:
agencies:
nondisclosure agreements.
Existing law, the legislative code of ethics, prohibits Members of the Legislature from entering into, or requesting that another party enter into, a nondisclosure agreement relating to the drafting, negotiation, or discussion of proposed legislation. Existing law also makes any nondisclosure agreement relating to the drafting, negotiation, or discussion of proposed legislation entered into after January 1, 2026, void and unenforceable. Existing law provides an exception for nondisclosure agreements, or portions thereof, that prevent only the disclosure of trade secrets, financial information, or proprietary information, as specified.
This bill would prohibit a local
government official
agency official, as defined,
acting in their official capacity from entering into, or requesting that another individual enter into, a nondisclosure agreement relating to public business that precludes their ability to share information with fellow local
government
agency
officials serving on the same council, board, commission, district, or agency. The bill would require a local
government
agency
official in violation of that provision to, among other things, disclose the existence of the nondisclosure agreement, as specified, and would provide that these requirements imposed on a local
government
agency
official also apply to a local
government
agency
official acting in their official capacity who entered into, or requested that another individual enter into, a nondisclosure agreement described above before January 1, 2027. By imposing additional duties on local
government
agency
officials, the bill would impose a state-mandated local program. The bill would also make any nondisclosure agreement relating to public business that precludes the ability of a local
government
agency
official to share information with fellow local
government
agency
officials serving on the same council, board, commission, district, or agency and that is entered into after January 1, 2027, void and unenforceable.
The bill would prohibit
staff of
an employee of a local agency or
a local
government
agency
official acting in their official capacity from
entering into, or requesting that another individual enter into, a nondisclosure agreement relating to public business that precludes their ability to share information with the local
government
agency
official who they serve
under.
or the governing body of the local agency that employs them.
The bill would also make any nondisclosure agreement relating to public business that precludes the ability of
any staff of
a local
government
agency
official acting in their official capacity to share information with the local
government
agency
official who they serve under
or the governing body of the local agency that employs them,
and that is entered into after January 1, 2027, void and unenforceable.
The bill would require a local agency official in violation of a prescribed provision to, among other things, disclose the existence of the nondisclosure agreement, as specified, and would provide that these requirements imposed on a local agency official also apply to a local agency official acting in their official capacity who
entered into, or requested that another individual enter into, a nondisclosure agreement described above before January 1, 2027.
The bill would provide an exception for nondisclosure agreements, or portions thereof, that prevent only the disclosure of trade secrets, financial information, or proprietary information, as specified. The bill would define “local government official” for its purposes to mean any public official serving on behalf of a city, county, local agency formation commission, special district, or local educational agency, as specified, and would exempt from its provisions a local government official serving on behalf of a charter city or charter county.
The California Constitution requires the state to reimburse local agencies and school
districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

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